Economics/Class Relations

The retail industry is facing a potential wave of bankruptcies – here’s why

By Lauren Thomas CNBC

  • Last week, Revlon filed for Chapter 11 bankruptcy protection, making it the first household consumer-facing name to do so in months.
  • Now the questions are: Which retailer will be next, and how soon?
  • After a nearly two-year reprieve, the retail industry could start seeing an increase in bankruptcies later this year, experts say.

The retail industry is up against a potential wave of bankruptcies following a monthslong slowdown in restructuring activity.

There could be an increase in distressed retailers beginning later this year, experts say, as ballooning prices dent demand for certain goods, stores contend with bloated inventory levels and a potential recession looms.

Last week, 90-year-old cosmetics giant Revlon filed for Chapter 11 bankruptcy protection, making it the first household consumer-facing name to do so in months.

Now the questions are: Which retailer will be next? And how soon?

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